The 23-year-old resort is situated on 37 acres of oceanfront onMaui's northwest coast. The hotel includes 25,000 sf of indoormeeting and banquet space, 100,000 sf of outdoor function space,two spacious pool decks and the 9,000-sf Spa Moana, which HostMarriott touts as the only oceanfront full-service spa inHawaii.

Host Marriott says the resort is the most prominent hotel inKaanapali and the RevPAR leader. The purchase price, a 20% discountto replacement cost, is 9.7 times the hotel's forecasted 2003EBITDA (Earnings Before Interest Expense, Taxes, Depreciation,Amortization) of $33 million, which breaks down to $23 million inforecasted GAAP operating profit plus depreciation expense of $10million.

Host Marriott president/CEO Christopher Nassetta says Maui hasextremely high barriers to entry for new supply. "In fact, supplyhas actually declined due to recent conversions to timeshare," saysNasetta. "As a result, we believe there is meaningful upsidepotential over the next several years."

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.